Role of Government

Governments are essential in today's world.

• Yes

• No

• Not sure

• Absolutely not!

Which of these is not a major macroeconomic objective of governments?

• Low and stable inflation

• Increasing pofitability of companies

• Full employment

• High and sustainable growth

The four government objectives are low inflation, low unemployment, balance of payments and

• Safe defence spending
• Economic growth
• High interest rates
• Low tax revenue

What type of policy is the use of interest rates to control the economy?

• demand side policy
• fiscal policy
• insurance policy
• monetary policy

Which of the following would be an expansionary fiscal policy (increasing economic growth)?

• lowering income tax

• raising the value of our currency

• printing money

• lowering government expenditure (spending)

Which of the following would be an expansionary monetary policy (increase in economic growth)?

• raising wages of prison staff
• raising interest rates
• lowering interest rates
• lowering government spending

Which of the following products will be MOST likely have a decrease in demand by an increase in income tax?

• Petrol

• Salt

• Jewellery

• Bread

What is macro economic policy?

• Policies which focus on specific industries
• Policies which focus on the whole of a country
• Policies which focus on a particular market
• Policies which help certain companies

What is micro economic policy

• policy which focuses on the whole of a nation
• Small policies
• Policies which are specific to a company, industry or market
• Policies which are not important

Fiscal policies refers to the _________ and _______to influence the nation’s economy especially.

• Government spending

• Government laws

• Government financial management

• Government taxation